Google-parent Alphabet on Tuesday said it's acquiring cybersecurity firm Mandiant for $23 per share in an all-cash $5.4 billion deal. Google stock edged up on the news.
Microsoft also had an interest in buying the company, according to reports.
Mandiant provides cyber-incident response and cybersecurity testing services. FireEye split off Mandiant last year. FireEye then sold its products business to private equity investors.
Google stock climbed 0.6% to close at 2,542.09 on the stock market today. Meanwhile, Mandiant stock fell 2% to 22.04. Microsoft shares lost 1.1% to 275.85.
Shares in Reston, Va.-based Mandiant popped 16% on Monday amid speculation a deal was close. The $5.4 billion value of the deal includes the company's net cash.
Google Stock: Mandiant To Join Cloud Unit
Upon the close of the acquisition, Mandiant will join Google's cloud computing business.
"Mandiant was in play with Microsoft or Google a potential suitor and thus today's news finalizes this process over the last month with Mandiant up significantly from early February/pre-M&A speculation," Wedbush analyst Daniel Ives said in a report to clients.
He added: "This deal is all about Mandiant being further integrated into Google Cloud with more cyber threats facing enterprises/governments on the transformational shift to cloud and Mandiant establishing itself as the 'Navy SEALs of cybersecurity' over the last decade."
At Truist Securities, analyst Youssef Squali said in a report: "Given MNDT's close relationship with the U.S. federal government, Google Cloud gains a foothold in an important and difficult to penetrate segment of the market."
Google Cloud in late 2019 took over Alphabet's Chronicle threat-detection cybersecurity unit.
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